Yes/no and yes/no. As with everything Real Estate there are two, three,.... different sides to a question and especially not a direct, 100%, spot on answer to any questions because the variables are too great.
More questions to think on:
1. Are the rented homes being properly maintained and well cared for by the current tenants?
2. Are the current tenants in a lease purchase or rent-to-own situation?
3. Do you see the neighborhood renter to owner ratio going higher in the future?
Short answer: If the properties are not being properly maintain and the rent-to-own ratio will continue to increase, adding more no caring tenants, this could cause property values to drop.
Long answer: Is there planned expansion of a major employer that will increase the demand for housing in that neighborhood, thereby raising rents and creating a higher value in the neighborhood?
I know this is a lot to think about, but there is no direct answer when it comes to Real Estate. These are some thoughts to kick around when analyzing neighborhoods.
Josh Barnett, Realtor
Metro First Realty
In gated Condominium communities if the ratio of leased units to own reaches a certain level the community loses its eligibility for FHA and VA financing and this does impact sales in the community, especially with first time buyers.
As a Realtor performing CMAâ€™s we do not know which homes are leased or owned. We establish our value based upon the homesâ€™ similar and historical comparables in the addition or macro area. This also applies to the performance of appraisals. In addition, all sales statistics do not differentiate between leased and owned homes.
There has and continues to be conflicting views on the question youâ€™re asking. I went to my favorite source Google and searched your question. There are ten plus pages of different articles on this subject.